Chukyo Iyakuhin Co., Ltd. (JASDAQ:4558) announced a private placement of 875,000 common shares at a price of ¥343 per share for gross proceeds of ¥300,125,000 on March 7, 2013. The round will include participation from existing investors, Chita Shinkin Bank, which will invest for 400,000 shares and Directors, Masayuki Yamada will invest for 417,000 shares, Makoto Tsujimura will invest for 26,000 shares, and Yoshihiro Matsumoto, Koji Kanazawa, Toru Iida, and Shuji Yonezu will invest for 8,000 shares each. Chita Shinkin Bank, Masayuki Yamada, Makoto Tsujimura, Yoshihiro Matsumoto, Koji Kanazawa, Toru Iida, and Shuji Yonezu currently hold 0.98%, 12.86%, 0.49%, 0.58%, 0.17%, 0.11%, and 0.16% stake in the company respectively. Masayuki Yamada and Chita Shinkin Bank will hold 15.54% and 4.42% stake in the company upon closing. The shares will be issued by third party allocation. The board of the company approved the transaction. The company will receive net proceeds of ¥285,125,000 after issue expenses including financial advisory fee and registration and license tax, and other legal advisory fees of ¥15,000,000. The company has received opinion from its auditors that the transaction is not advantageous a legal violation.

On March 11, 2013, the company announced that existing investorsYamasho YK, Yukio Yamada, and Yuzo Yamada and Hiroshi Yamada, existing investor and Director of the company have filed an application for injunction to stop the new shares issuance.

On March 22, 2013, Chukyo Iyakuhin Co., Ltd. closed the transaction.